som- l7_process improvement_stud (1)
TRANSCRIPT
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Lecture 7Process ImprovementChapter 07
Check Do
Act Plan
Time
Qua
lity
leve
l
McGraw-Hill/IrwinService Management: Operations, Strategy, and Information Technology, 6e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
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Learning ObjectivesLearning Objectives
Quality and Productivity Improvement Process
Use quality tools for process analysis and problem solving.
Benchmarking for service improvement.
Quality improvement programs
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Quality and Productivity Improvement ProcessQuality and Productivity Improvement Process
Foundations of Continuous Improvement Customer Satisfaction
Focus on satisfying your ______________________ Management by Facts
Collecting objective data for ___________________ Respect for People
Employees are given support and their ideas are solicited in an environment of mutual respect
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Quality and Productivity Improvement ProcessQuality and Productivity Improvement Process
The principal objective of continuous improvement is to eliminate the ___________of problems so they do not recur.
Focus on the process Deming’s approach – PDCA cycle
A ______________________ cycle with quality improvements
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Quality and Productivity Improvement ProcessQuality and Productivity Improvement Process
Plan-Do-Check-Act (PDCA) Cycle Plan, select and analyze the problem
(customer indicators, focus, as-is, to-be)
Do, implement the solution (trial, progress)
Check, the results of the change (the effect)
Act, to standardize the solution and reflect on learning from experience (communicate)
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Quality and Productivity Improvement ProcessQuality and Productivity Improvement Process
Problem-Solving approach in the PDCA Cycle:
Step 1: Recognizing the Problem & Establishing Priorities (problem outline)
Step 2: Forming Quality Improvement Teams (interdisciplinary and management)
Step 3: Defining the Problem (pareto analysis) Step 4: Developing Performance Measures (pre &
post) Step 5: Analyzing the Problem/Process (Flowcharting)
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Quality and Productivity Improvement ProcessQuality and Productivity Improvement Process
Step 6: Determining Possible Causes (Fishbone diagram) Step 7: Selecting & Implementing the Solution (criteria-
cause, prevention, cost & time) Step 8: Evaluating the Solution: The Follow-up (compare
performance) Step 9: Ensuring Permanence (control charts) Step 10: Continuous Improvement (new round of
improvement analysis)
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Quality Tools for Analysis and Problem Solving Check Sheet Run Chart Histogram Pareto Chart Flowchart Cause-and-Effect Diagram Scatter Diagram Control Chart
Case: Data from an airline
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Check Sheet of Problemshistorical record of observations Month Lost Departure Mechanical Overbooked Other
Luggage Delay
January 1 2 3 3 1
February 3 3 0 1 0
March 2 5 3 2 3
April 5 4 4 0 2
May 4 7 2 3 0
June 3 8 1 1 1
July 6 6 3 0 2
August 7 9 0 3 0
September 4 7 3 0 2
October 3 11 2 3 0
November 2 10 1 0 0
December 4 12 2 0 1
Total 44 84 24 16 12
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Run Chart of Departure Delaystracks change in a variable over time (compare)
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12
Months
De
pa
rtu
re D
ela
ys
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Histogram of Lost Luggagedata collected over time as a frequency distribution
0
0.5
1
1.5
2
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3.5
1 2 3 4 5 6 7
Occurrences per Month
Fre
qu
en
cy
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Pareto Chart of Problemsorders problems by relative frequency
0102030405060708090
DepartureDelay
LostLuggage
Mech. Over-booked
Other
Number of Problems
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Pareto Analysis of Flight Departure Delay Causes
Cause Percentage of Incidents Cumulative Percentage
Late passengers 53.3 53.3
Waiting for pushback 15.0 68.3
Waiting for fuel 11.3 79.6
Late weight and balance sheet
8.7 88.3
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Flowchart at Departure Gateprocess flow for intervention points
Passenger Arrives
Ticket No Wait for For Flight Appropriate Flight
Yes
Check Yes Excess Luggage Carry-on
No
Issue Boarding Pass
Passenger Boards Airplane
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Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart)
Equipment Personnel
Procedure
Material
Other
Aircraft late to gateLate arrival
Gate occupied
Mechanical failures
Late pushback tugWeather
Air traffic
Late food service
Late fuel
Late baggage to aircraft
Gate agents cannot process passengers quickly enoughToo few agents
Agents undertrainedAgents undermotivated
Agents arrive at gate late
Late cabin cleaners
Late or unavailable cockpit crewsLate or unavailable cabin crews
Poor announcement of departuresWeight and balance sheet late
Delayed checkin procedureConfused seat selection
Passengers bypass checkin counterChecking oversize baggage
Issuance of boarding pass
Acceptance of late passengersCutoff too close to departure time
Desire to protect late passengersDesire to help company’s income
Poor gate locations
DelayedFlightDeparture
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Service categories: Information, customers, material, procedures, personnel, and equipment
Uncovered causes by asking the 1H5W Eliminate causes through discussion
and consensus Investigate remaining possibilities/root
causes
Cause-and-Effect Chart for Flight Departure Delay (Fishbone Chart)
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Scatter Diagram of Departure Delay vs Late Passengersrelationship between 2 variables (correlation) to identify root cause
0
2
4
6
8
10
12
0 1 2 3 4 5 6 7
Late Passengers
Dep
artu
re D
elay
s
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Control Chart of Departure Delaysmonitor a process (shows when a process is out of control)
60
70
80
90
100
Per
cen
tag
e o
f o
nti
me
flig
hts
Target
Lower Control Limit
1998 1999
n
pppUCL
1(3
n
pppLCL
1(3
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Benchmarking
Measuring a firm’s performance by comparing with the performance of other
“______________” companies
For every performance dimension, some firm has earned the reputation, and, thus, is a benchmark for comparision.
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Benchmarking
The benchmarking process: Determine what to benchmark
(improvement) Identify the company, form a
benchmark team Contact the benchmark firm, make a
visit, & study the process Collect and analyze information Take action to match or exceed the
benchmark
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Reasons to benchmark Establishing the difference
Examine the process that contribute to giving your market differential
Setting the highest possible standards Learning from Best in Class Creating synergy of ideas
Any degree of sharing of ideas is likely to benefit your company
Focus on ___________________
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Possible Processes to Benchmark Customer satisfaction Reducing set up time Improved training On-time delivery Product consistency Correct invoicing Speed of service Pricing and purchasing
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Quality Improvement Programs
Personnel Programs for Quality Assurance individual development (skills and knowledge) management training (development) human resource planning (identify resources) standards of performance (procedures) career progression (job-advancement) opinion surveys fair treatment profit sharing
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Quality Improvement Programs
Other QIP: Deming’s 14 Point Program
Refocus attention on meeting customer needs continuously to saty ahead of the competition.
Baldrige National Quality Award Annual award to U.S. companies that excel in
quality achievement and management
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Quality Improvement Programs
Other QIP: ISO 9000
Series of quality management system standards Documentation of processes and consistent
performance Certification signals that the firm has a quality
management system that ensures consistency output quality
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Quality Improvement Programs
Other QIP: Six-Sigma Objective is to reduce variations in
performance A rigorous and disciplined methodology that
uses data and statistical analysis
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Tutorial Questions
• Prepare a cause-and-effect or fishbone diagram for a problem such as “Why customers have long waits for coffee in a restaurant.” Use Figure 7.16, pg 164 as a guide.
• Explain how the application of the PDCA cycle can support a competitive strategy of low cost leadership.
• Explain why it is necessary for Step 10 – continuous improvement in PDCA cycle
• What are the limitations of “benchmarking”?
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Common Test
• Seating Plan
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